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13 Eligibility Requirements To Get Loans In Nigeria

Last updated on August 6th, 2023 at 06:47 am


There are several loans you can access in Nigeria. But lenders or banks would make sure that you have verifiable data.

This isn’t peculiar to only Nigeria, but it’s a normal standard in every part of the World. Apart from verifying you also known as knowing Your Customer (KYC) in the business world, banks want to ensure that the loan is used or the purpose it is meant.

It’s unethical to access SME loan and use it for a birthday party.


So, what are the eligibility requirements to access any kinds of loans in Nigeria? Do I just walk straight into any bank and ask for a loan?

In this guide, we’ll be taking a look at the criteria you must meet to access loans in Nigeria either for your business or for personal use like housing loan.

Eligibility Requirements To Get Loans In Nigeria

Here are the key requirements you must satisfy before your loan request can be granted in Nigeria:

  1. Name
  2. DOB
  3. State of Mind
  4. Address
  5. Bank Verification Number (BVN)
  6. Employment status
  7. Income
  8. Means of Identity
  9. Guarantor information
  10. Expenses
  11. Purpose of the loan
  12. Business plan (for SME loan)
  13. EDC Training certificate (for youth loan)

How does the above really matter?

Usually, financial institutions, money lenders, and investors would want to know where the loan is going to and for what purpose.

The reason is very clear: would it be able to recoup its investment, most especially interest.

So, let’s see why KYC is very important in loan disbursement


Your name is very important. Banks follow up to be sure that you are the person you claimed to be.

Also Read:  100 for 100 PPP CBN Loan Application Process

Your loan application could be rejected if you have incoherent names across different platforms. Banks know how to verify you.

Be sincere, avoid fake name.

Date of Birth (DOB)

Loans are not meant for everyone. If if was, a JJS 1 pupil could possibly walk into a banking hall to apply for one.

State of Mind

Are emotional and psychologically sound to manage loan? Some of the banking staff members that coordinate funding and loan units of banks are psychologists.

They could draw their conclusion from a mere interaction with you. No bank would ever grant loan application to some who whose state of mind is doubtful.


Moneylenders or banks have a different mechanism of finding out if you use different addresses.

For instance, today you fill in a form, saying you stay in Abuja, tomorrow, your address is Benue and the next day you claimed a Lagos address. That’s a reg-flag.

Be consistent in your address if you really want to access a loan in Nigeria.

Bank Verification Number

Bank Verification Number or BVN is the most efficient tools used by banks to dig into your record.

The BVN date contains your fingerprints, names, address, and phone number. The CBN has even taken a step ahead to simplify the loan repayment process.

For instance, if you take a loan from First Bank and abandon the bank because you don’t want to repay, your BVN will be used to track other banking accounts operated by you.

The loan and charges would be taken from another bank owned and managed by you and you would also be sanctioned.

So, BVN is one eligibility requirements to access loans in Nigeria, most especially when it is secured loan.

Employment status

No lender would grant the loan application of an unemployed person. How would he payback.

Also Read:  Statistics Show Bank Loan Terms, FG Policies Affect Youths Access To Credit Facility in Nigeria

That’s why some of the online money lenders would ask about your current employment status and how much you earn as a monthly salary. Your employment status would help the lender determine the amount you are can get.

For instance, your monthly salary is N100, 000 and you are applying for a loan of N500,000, your application might be rejected.

It’s all about business and management and the ability to sustain the business. One of the things is paying attention to the employment status and salary of the application.

Taking a loan more than your monthly salary is like taking what you can’t chew.

Most time, the lender asks for borrower bank account details and history so as to back up their income and employment.

If there are red flags in your account statement like gambling, bad debt etc, a lender might steer clear from granting your request.


Related to employment status and monthly salary is income. Self-employed individuals would also have to provide their source of income.

Would their source of income cater for repayment?

Means of Identity

Another eligibility requirement for your loan application to be granted is: you must provide a means of identity.

Acceptable means of ID in Nigeria include National Identity card, Passports (international), INEC voter’s card, National Identity Number, and Driver’s licence.

But, technology has simplified this process has your BVN could be used to verify your real identity while you may also be mandated to take a selfie with your mobile phone if you applying for an online loan.

Guarantor Information

Depending on the type of loans you want to take, you may be required to provide information of a guarantor in case you failed.

If it’s a secured loan, the lender would not only verify you, they would make attempt to ensure that you’ve provided the genuine information of a verifiable guarantor.

Also Read:  Types of Loans Offered By All Nigerian Banks

This way, you need to seek the consent of the guarantor before you fill him in as your guarantor.

That’s why the bank would call and speak to your guarantor. If you failed, your guarantor pays the bill.

That’s why a money lender would give out loan to some with a good credit score.

Purpose of the loan

What is the purpose of the loan? Is it to expand your business? For consumption or medical bills?

Moneylenders usually pay attention to this to determine the amount to grant. Have wondered why banks are always ready to grant the loan application of an existing and successful business?

In fact, most of the Nigerian banks submit encourage persons like Aliko Dangote, Femi Otedola etc to come and take a loan for their business.

They can be 90% sure of where and what the loan would be used for, unlike someone who has no existing business.

Business plan (for SME loan)

The introduction of SMEs loans by the CBN and other youth-oriented ministries in Nigeria has made business plan one of the key requirements to access loans in Nigeria.

You need to business plan to access some of the SME loans in Nigerian banks.


We’re working on the list of SME loans suitable for your business in our subsequent publications. You can subscribe to our newsletter below.

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EDC Training certificate (for youth loan)

Do you have a training certificate from an Entrepreneurship Development Institute or Entrepreneurship Development Centre?

This is one of the requirements to access Agric-Business Small and Medium Enterprises Investment Scheme, also or AGSMEIS loan in Nigeria.

Did we miss out any other key requirements to access loans in Nigeria? Join the conversation here.

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1 thought on “13 Eligibility Requirements To Get Loans In Nigeria”

  1. I must say I’m really impressed by the nice write-up you have here. You actually did a great job, unlike most bloggers I’ve seen on the internet talking about this same topic. Just reading the first few paragraphs, I was already locked in the content. Bravo and keep up the good work.

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